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QB ONLINE TOPS 1M SUBS Featured

Brad Smith, IntuitIntuit had already announced this but the financial results for the year ended July 31 show the number of QuickBooks Online subscribers topping 1 million for the first time in a quarter. The software company ended the year with 1,075,000 subscribers, an increase of 57.4 percent over fiscal 2014. The July 31 total was 110,000 higher than the subscription number when the third quarter ended on April 30, an 11.4-percent rise from the prior quarter.

And Intuit declared itself on track to top 2 million QBO subscribers by the end of fiscal 2017. “This represents the ninth consecutive quarter of accelerating paid subscriber growth,” CEO Brad Smith said in prepared remarks during this week’s earnings webcast. Intuit said the growth in QBO offset the decline in the sale QuickBooks desktop units, down 14 percent in the quarter and 22 percent for the year. Intuit lost $36 million for the most recently ended year, compared to earnings of $907 million for 2014. Revenue for 2015 was $4.19 billion, a drop of 2.2 percent from $4.24 billion the prior year. Accounting changes continued to take a toll on reported results. Small business revenue was down by 2 percent and ProTax revenue was down 33 percent, both for the year, resulting from the decision to recognize revenue ratably. The change shifted $150 million in ProTax revenue to the current fiscal year. One of the most important numbers is the 198,000 QBO subscribers outside the United States, an increase of 135 percent over the prior year. To date, the battle between Intuit and Xero has largely reflected Intuit subscribers that were almost entirely in this country and Xero numbers that were overwhelmingly from outside the U.S.

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